The Autumn Budget 2024 brought both hope and concern for the social care sector. While the Chancellor announced additional funding for the NHS, many providers and families were left asking: what does this actually mean for the cost of home care? Here we break down the key announcements and their practical impact.
The National Living Wage Increase
One of the most significant changes was the increase to the National Living Wage, rising to £12.21 per hour from April 2025. While this is a positive step for care workers – one of the most underpaid workforces in the country – it also increases operating costs for providers. Many smaller providers have warned that without corresponding increases in local authority funding rates, this could threaten the viability of some services.
Employer National Insurance Contributions
The increase to employer National Insurance Contributions from April 2025 added further financial pressure to care providers. Unlike many other sectors, social care cannot simply pass these costs on through higher prices when a significant proportion of clients are funded through local authorities at fixed rates. At Your Care Solutions, we continue to advocate for fair funding rates that allow us to pay our staff properly and invest in the training and equipment needed to deliver excellent care.
What This Means for Self-Funding Clients
If you fund your own care, it is worth reviewing your arrangements and ensuring you are accessing all available benefits. Our team can advise on Attendance Allowance and other entitlements that may help offset the cost of care.
